GREEN
ACCOUNTING
Created By GARVIT ANEJA
ROLL NO. 1175
Submitted to :- DR. MAMTA RANA
Green Accounting
Green accounting is a framework for measuring and reporting the
environmental impacts of business activities. It helps organizations
understand the value of natural resources, reduce environmental liabilities,
and make informed decisions about sustainability.
What is Green
Accounting?
Measuring Environmental 2 Valuing Natural 3 Sustainable
Impacts Resources
It assigns monetary value to Reporting
It provides stakeholders with
Green accounting incorporates natural capital, such as forests, information about a company's
environmental costs and benefits water, and biodiversity. environmental performance.
into financial statements.
The Importance of Environmental Reporting
Transparency and Investor Confidence Sustainable Business
Accountability Practices
Investors are increasingly seeking Environmental reporting encourages
Environmental reporting promotes companies with strong environmental companies to adopt sustainable
transparency and accountability by records and green accounting practices that minimize their
providing stakeholders with data on practices. environmental footprint.
environmental performance.
Environmental Impact Measurement
Metric Description
Greenhouse gas emissions Quantifies the amount of greenhouse gases released into the
atmosphere.
Water usage Measures the volume of water consumed in production
processes.
Waste generation Tracks the amount of waste produced and disposed of.
Integrating Green Accounting into Financial Statements
Identifying Environmental
Costs
Includes costs associated with pollution control, waste management, and resource depletion.
Quantifying Environmental Benefits
Measures the value of environmental services provided by the company.
Adjusting Financial
Statements
Reflects environmental impacts on the company's overall financial performance.
Challenges and Limitations of
Green Accounting
Data Availability and Valuation of Natural
Reliability Capital
Accurate and consistent data Placing a monetary value on
on environmental impacts can natural resources is complex
be difficult to obtain. and subjective.
Lack of
Standardization
There are no universally accepted standards for green accounting
practices.
Regulatory Frameworks and
Policies
Global Reporting Initiative
(GRI)
Provides guidelines for sustainability reporting, including
environmental performance.
Sustainability Accounting Standards Board
2
(SASB)
Develops standards for disclosing sustainability information that
is relevant to investors.
Task Force on Climate-Related Financial
3
Disclosures (TCFD)
Encourages companies to disclose climate-related financial
risks and opportunities.
The Future of Green
Accounting
Increased Adoption
Green accounting is expected to gain wider acceptance in the coming years.
Technological
Advancements
New technologies will improve data collection and analysis for green accounting.
Integration with Financial
Statements
Green accounting will become more closely integrated into traditional financial reporting.
Conclusion and Key
Takeaways
Green accounting is a vital tool for promoting sustainability and fostering a more environmentally responsible economy.
Organizations that embrace green accounting practices can gain competitive advantage and contribute to a more sustainable future.
